The Mechanism of Avoiding Riba in Islamic Financial Institutions
Experiences of Indonesia and Malaysia
Bibliographic Data
| ID | 22317899 |
|---|---|
| Authors | Muhammad Maksum (0000-0003-3799-0741, Syarif Hidayatullah State Islamic University Jakarta, corresponding author) |
| Year | 2023 |
| Volume | 22 |
| Issue | 2 |
| Pages | 235 |
| Publication date | 2023-12-15 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | JURIS (Jurnal Ilmiah Syariah) (JOURNAL) |
| Journal identifiers | ISSN: 1412-6109 • E-ISSN: 2580-2763 |
| Publisher | Iain Batusangkar (PUBLISHER) |
| DOI | 10.31958/juris.v22i2.6952 |
| OpenAlex | W4390372697 |
| Language | EN |
| Citations received | 3 |
| References cited | 16 |
The issue of discrepancy between business goals and sharia principles related to debt raises a problem. Financial institutions seek profit, but lending and borrowing money (qardh) in Islam is not for profit. This has the potential to generate usury (riba), and must be avoided by Islamic Financial Services (IFS). This article examines several Islamic legal opinions (fatwa) from the Indonesian National Sharia Council and the Malaysian Sharia Authority Council utilizing a normative and descriptive legal study approach, in conjunction with the science of Islamic jurisprudence (ushul fiqh). The results of the study outline that Islamic financial institutions must create products to avoid riba practices on unlawful debts. Two models for the creation of anticipatory riba were found by tracing and testing Islamic financial products using a credit schemes (qardh), namely entering into a service contract (ijarah) and conducting several transactions (bay' al-'inah) for one object. This product highlights the repetition of an old practice long-debated in classical fiqh because it is prohibited in a hadith of the Prophet Muhammad. This finding has implications for Sharia compliance as long as Sharia financial products do not shift to profit-sharing or buying and selling-based financial products
Business · Debt · Economics · Financial services · Fiqh · Indonesian · Islam · Normative · Political science · Profit sharing · Sharia · Usury · Islamic Finance and Banking Studies · Islamic Finance and Communication · Law · Microfinance and Financial Inclusion · Accounting · Finance
External Debt the State for Indonesia’s Economic Development in Perspetive of Islamic
Fatwa antara Makharij Fiqhiyah dan Market Needs
Implementation of Progressive Law in Sharia Banking Dispute Settlement
Economic and Legal Dimensions of Collateral Existence in Modern Mudhârabah Contracts
The Crucial History of Sharia Banking Law Development in Indonesia
The Urgency of Fatwa in the Law of Sharia Economics in Indonesia
Analytical Framework for Study the Fatwas of Sharia Economics
The Level of People's Obedience to MUI Fatwas (Covid-19, Bank Interest, and Interfaith Marriage)
Complying with Sharia While Exempting from Value-Added Tax
Hijrah and changing religious preferences in contemporary Islamic legal practice
Breach of contract
Bureaucratizing Fatwā in Indonesia
The Legitimation of Religion in Profit Seeking
The Transformation of Ijârah
Riba and Interest Concept and Banking in the Ottoman Empire
| Unique citing works | 3 |
|---|---|
| Citations per year | 1,5 |
| Citation span | 2024 - 2025 (2) |
| Citation velocity | recent |
| Highly cited | No |
| Citation types | Neutral: 3 |